No, the crazy graphics has ballooned the cost of games so much that it's hurt the industry. Making a 3d game is hard enough, throwing the additional complexity and intricacies on top of that would make it too expensive to be profitable.

Minecraft and pokemon have famously behind the times graphics and they've done well.

Beat Sabre and Gorilla Tag have done well on VR, and those are hardly crazy graphics.

Instead of Meta buying game companies and never releasing games, they should have bought those companies, seen how their pipelines looked for a successful release, and then developed software that streamlined those releases, making it easier for outside companies to release more and better games.